The Consumer Price Index (CPI) rose 0.4 percent in April on a seasonally adjusted basis, down from 0.5 percent in March. The gain, which was in line with most analysts’ expectations, was led mostly by food and energy costs, which remained elevated but below their increases from the past two months.

Food prices rose 0.4 percent, with the cost of many grocery items up significantly over the past year. The largest increases in food items over the past year, for instance, were for fats and oils (up 8.1 percent), meats, poultry, fish, and eggs (up 7.6 percent), dairy and related products (6.3 percent), and fruits and vegetables (up 2.6 percent).

Gasoline prices rose 7.5 percent in April, or 33.1 percent over the last year. Likewise, household energy costs were also higher, up 0.3 for the month or 1.9 percent year-over-year. For those homes using fuel oil, the price increases were greater, however (2.0 percent and 25.4 percent, respectively). Excluding food and energy costs, the CPI rose a more modest 0.2 percent.

Higher costs for food and energy are beginning to chip away at over consumer spending. Yesterday, for instance, the Census Bureau released new data on retail sales.  Retail sales slowed somewhat in April, up 0.5 percent for the month versus 0.9 percent in March. The effect of rising gasoline prices is having an impact, as gasoline stations experienced a 2.7 percent increase in sales for the month, the largest of any retailer. Core sales, which exclude autos and gasoline, were only up 0.2 percent.  The biggest declines in sales were in electronics and appliances (down 2.2 percent), sporting goods and hobbies (down 1.9 percent), and furniture and home furnishings (down 1.1 percent).

Later this morning, the University of Michigan will release its consumer sentiment numbers for May, which are expected to decline, largely due to higher costs.

Chad Moutray is chief economist, National Association of Manufacturers.